Australian PM Anthony Albanese says there has been “significant progress” in relations with China after talks with President Xi Jinping in Beijing.
Mr Albanese, who landed in Shanghai on Saturday, is the first Australian leader to visit China since 2016.
The four-day state visit is seen as a key point in thawing relations, after a string of trade and security disputes.
Trade is at the top of the agenda – Mr Albanese is calling for the removal of Chinese tariffs on Australian goods.
Mr Xi was expected to ask for more access to key Australian sectors.
Both men pledged to continue working in the “mutual interests” of their countries, following years of tensions.
Welcoming Mr Albanese to the Great Hall of the People, President Xi said China and Australia stood to become “trusting partners” and were on the “correct path of improving and developing relations”, state broadcaster CCTV said.
Mr Xi told Mr Albanese that Beijing hoped to “fully develop the potential of the China-Australia free trade agreement”.
Ahead of their talks, Mr Albanese had told reporters: “We need to co-operate with China where we can, disagree where we must and engage in our national interest.